There has been a great deal of discussion in the media about the rate at which Turkey is developing economically and how it’s becoming a tourism destination of note, as a result a growing number of individual and institutional real estate investors are starting to ask ‘is buying property in Turkey a good investment?’

To assist with investors’ due diligence and ongoing research into the viability of Turkey as a property investment destination, here’s our overview of the property investment potential in Turkey and the five main factors driving the market currently.

Firstly the long drawn out discussions regarding Turkey’s bid for EU entry finally resulted in membership negotiations being symbolically and officially opened on the 3rd of October 2005.

The opening of negotiations followed three years of Turkey judiciously adopting EU related reforms to align its country strategically with its European neighbours. The political, social and economic reform process is ongoing but Turkey has an arduous task to win round all the European nations and to be accepted for accession by circa 2015…however the country and its government are committed to the process.

When it comes to finding the best property investment potential in the world all eyes have turned to Turkey since the country began talks towards achieving EU accession and the Turkish economy officially became a market economy.

The future prospects for Turkey are very positive indeed and this translates well and directly to the Turkish property market where investor interest has surged throughout 2005 and where property prices are beginning to creep up fast.

While property prices in parts of Turkey may be about 10 years behind those in Spain for example, this trend is starting to change because the levels of interest in Turkish property have surged particularly along the Riviera region in southern Turkey. And since it was announced that Turkey is now on target for EU accession investor confidence in Turkey has reached an all time high.

Turkey has long dreamed of a place in Europe and has made a concerted effort in recent years to change legislation, practices and regimes to align the country more with its European neighbours. Cleary this has worked to Turkey’s political advantage but it has also worked well economically for the country. As Turkish resorts begin to feel more Southern European in their flavour so their attraction intensifies with European visitors - and tourism numbers in Turkey have increased substantially in the past five years as a direct result.

The principles relating to the ownership of property in Turkey are laid out in Article 35 of the Turkish constitution and the laws relating to the foreign freehold ownership of land or real estate in Turkey have recently been revised and relaxed meaning that the property buying process in Turkey today has been simplified.

An investor wishing to enter the Turkish property market needs to be aware of certain restrictions that apply to the foreign ownership of properties or land of a given type in a particular location; furthermore it’s imperative that detailed and thorough title searches are carried out by an investor’s lawyer because problems have been known to arise with vendor’s not having the right to sell property for example.

Basically the process to purchase investment property in Turkey is straightforward if an investor is aware of the potential pitfalls and the restrictions that apply. This guide to the property buying process in Turkey highlights the main issues property buyers should bear in mind; but nothing can replace good legal advice and the first thing an investor should do before even making an offer on a property is find a local real estate lawyer to represent their interests.

The attraction of Turkey from a property investor’s perspective just got even better. In October 2005 when Turkey agreed to enter into talks with the European Union towards the country’s EU membership, the Crown Prince of Dubai immediately invested five billion US dollars into Turkey’s real estate sector giving overseas investors a boost of confidence in the country.
Many second and holiday home owners and retirees had already begun to explore the delights of Turkey Property Market particularly along the country’s southern coastline, but now focus has broadened and appeal for property in Turkey is expanding countrywide.

Over the past ten years Turkey has undertaken many major reforms designed to align the country with her European neighbours and form strong economic links and business relationships with the West whilst retaining an important bond with the Middle East. The reforms have been successful and have resulted in Turkey beginning talks with the EU.